A robust process that includes a broader methodology and considerable expertise is required to approach franchising your business. After reviewing the state of franchising readiness, a much more structured franchising assessment (more on this below) is required. A successful franchise assessment will point the way forward, whether it`s a) continuous development, b) working on necessary changes/improvements, or c) dealing with other options or doing nothing. Whether your business is currently small or large, if you want to expand nationally or internationally, you should seriously consider franchising. A properly structured and implemented franchise model is often the fastest, most efficient and, in many cases, most effective way to grow a business. How to run the business is one of the key aspects of franchise manuals and training systems. Common areas that need to be covered include business planning, local marketing, sales, human resources, operations, customer service, procurement and warehouse management, and finance and administration. To a large extent, the quality and commitment of the franchisor can be assessed, and the potential for success of a franchise system is determined by the quality and completeness of the manuals. Franchise-specific training is important to ensure that key officers and employees in the franchise support office understand franchising and managing the franchise system. There are many areas where the support office team must be competent and qualified to maximize their chances of success for their own businesses and those of franchisees. Examples: You must provide interested candidates with detailed documents on the franchise application. Once the franchise system has been developed, attention should be paid to how franchisees are attracted and selected to meet the ideal franchisee profile. Therefore, the franchising recruitment infrastructure phase should help prepare for the franchisee search by creating a recruitment plan, marketing materials for franchise recruitment, franchisee evaluation systems, and a general franchise recruitment management system.

The objectives of creating such a recruitment infrastructure are, overall, (a) to attract and select suitable candidates, (b) to provide a system for early screening of inappropriate candidates, and (c) to complete recruitment while minimizing the risk of adverse downstream legal liability. We organize all factories, inventory and equipment for your operation and make sure everyone in your area knows your business. Successful applicants must receive the detailed franchise agreement and have the ability to negotiate certain terms. Once you`ve reached an agreement, franchisees pay a franchise fee in advance to join your franchise. Once you have developed your business model well, the next step is to prepare the various franchise documents. This documentation allows you to create, promote, and execute cost-effective duplicates of your pilot operation. A viable franchisee model must also be developed to ensure that a franchisee earns a reasonable salary and can also get a good return on the money they invest in buying and setting up the franchise branch. If these criteria cannot be met, franchising is not realistic and another form of distribution should be considered. First of all, you need to learn about all relevant training on topics such as franchise management, field visits, setting up franchise advisory boards, setting up KPIs, etc. These courses are regularly delivered in New Zealand by Franchize Consultants and there are also occasional visits from some Australian specialists. The more you learn about the philosophy and operation of a good franchise, the faster you and your franchisees will get good results. In the next step, the franchise system is documented based on the needs identified in the strategic planning.

This includes the preparation of the franchisee`s manual or the manual assembly. The end result of this sophisticated design and modeling should be a balanced franchise format that can provide both parties with good returns on the efforts and funds invested in a business that can grow in size and value. As part of setting up a franchise, you`ll need documents and systems to ensure that everything about your business is transparent and transferable. Your team of experts can help. You need to be able to teach someone else how to work successfully with your methods and develop a profitable market for the company in a different geographical area. Your systems and processes need to be simple and transferable. There are four important steps to starting a franchise. You should: assess whether your business would lead to a successful franchise; prepare the necessary franchise documents; Recruit franchisees; and engage in ongoing management of the franchise. This documentation sets out the procedures, systems and policies that each franchisee must follow when setting up and operating a new location. These documents ensure consistency throughout the franchise. Could your business be the next McDonald`s or Fastway Couriers? Win Robinson outlines what you need to do to turn your opportunity into action As a successful business owner, you may now want to run a franchise.

However, franchising your business can seem intimidating or confusing. Franchising is a process that requires a lot of time and resources. Franchising also comes with a wide range of benefits, such as the opportunity to grow with someone else`s work and capital, and to be exposed to fewer risks as you grow. This article describes the key steps to start a franchise in New Zealand. The recruitment strategy has been articulated in the implementation plan, but the supporting documentation itself must be planned and drafted with great care. This will guide potential franchisees through all stages of granting a franchise in a transparent and coordinated process. This is an important phase because without the right format or structure, your franchise will not be maximized and could even fail. Before the franchise system can be marketed professionally, you need to create material to familiarize potential franchise candidates with the business opportunity. This can range from a short brochure to use at trade shows to a more detailed overview of the possibilities and their benefits. All this material must be attractive, convincing and factual. It should accurately describe your franchise system and the support services offered, and include general information to help the applicant make a decision.

But overall, the new support office team needs to be led with a focus on increasing franchisees` profits. Such an orientation requires a lot of commitment, but also an infrastructure, as described above, capable of supporting this goal. Textbooks are the cornerstone of a franchise network. A good franchisor will also have a "franchisor`s manual" so that as their business grows, all employees are properly trained and thus maintain the integrity of the franchisor`s support systems and policies. Learn all about setting up and operating a franchise. Read industry books and magazines, attend information events, talk to people who have worked in franchises – franchisees and franchisors. As a franchisor, you manage the parent business and define how all franchises should be set up and operated. They offer: There is a wide range of questions to consider before setting up your franchise. Setting up a franchise can be time-consuming and expensive, but the benefits can be worth it.

Here`s what it takes to build a successful franchise. Franchising valuation involves taking into account many aspects and inputs in a methodical and structured order. Many decisions are then made that contribute to an overall financial and operational assessment. The objective of the franchising assessment is, of course, that franchising seems very appropriate and that there is the prospect of solid and sustainable returns for franchisees and franchisors. The franchise agreement is at the heart of the franchise system and the franchise relationship. The franchise agreement or contract is the legal document that expresses the entire agreement between the franchisor and the franchisee. The length of agreements can vary greatly, ranging from 20 pages or less to more than 50 pages. A franchise agreement describes the rights and obligations of the parties and lays the foundation for the relationship. Franchise agreements also include controls to protect the integrity of the franchise system and the entire franchise network. Running a franchise is different from running a single business. Acquiring expertise in managing a franchise will only contribute to the success of your franchise. To learn more about running a franchise, you can: You can buy a franchise without any experience.

However, to ensure success, it is best to consult experts and professionals in the field of franchising. A pilot operation is your original business model – the company before the first franchise. It allows you to determine which test systems, marketing plans, and supply chains are working and which aren`t.